Consuming Craft the contemporary craft market in a changing economy Executive summary

Morris Hargreaves McIntyre

Consuming craft: the contemporary craft market in a changing economy/Executive summary

1 Executive summary

Morris Hargreaves McIntyre was commissioned by the Crafts Council in March 2010 to research the current size, value and characteristics of the contemporary craft market in England. The resulting research provides evidence of the craft sectors economic impact from a market perspective, and supports craft retailers, galleries and makers in assessing the complex and evolving markets within which they work. The research has also produced a new and replicable methodology, by which key market value statistics can be effectively updated in future.

Consuming craft: the contemporary craft market in a changing economy/Executive summary

1.1 Introduction

1.2 Research Method

Research has shown significant shifts in consumer demand, towards value-centred products, services and experiences which meet emotional as well as functional needs. As markets evolve in response to recession and a changing economy, there is a need to understand how these values and their associated behaviours may shift and settle into new patterns of consumption relevant to contemporary craft. This substantial, quantitative research study reports on the characteristics of the craft market in 2010, providing forward-facing market intelligence and a strong basis for advocacy work and future planning as well as essential information for contemporary craft makers and suppliers of craft.

The aims of this research study are to understand: 1. The current size and growth potential of the contemporary craft market in England. 2. Within this market, where the strongest growth potential can be found. 3. How this picture (1 and 2 above) has changed since 2004, when the first study of the craft market in England was undertaken1. 4. How we might expect the contemporary craft market to evolve during the period 2010 2015, 5. in response to broader consumer trends. Research Method The research was conducted between April and June 2010. The statistics in this report are based on: Data derived from an online population survey, conducted with a representative sample of 7,000 adults aged 16 and over living in the UK between April and May 2010. The results are based on the responses of 4,259 adults2 and allows us to estimate the current size of the market for craft in England and to accurately describe the characteristics of those who buy, or are potential buyers, of craft (1.3 1.4). An in-depth, online survey of 416 adults who buy or are predisposed to buying craft. These responses provide us with greater detail about the purchasing behaviour and prevailing attitudes amongst the craft market today (1.5 1.8). Desk research undertaken to review literature on current consumer trends and to consider how these may influence the development and evolution of the craft market (1.9 1.10). In order to create a replicable methodology for the future, the research in this study was conducted using online, self-completion questionnaires. Because the Making it to Market study had used telephone interviews, we cannot directly compare changes in market size between 2004 and 2010. The results do however, provide us with indications of growth in the craft market.

--------------------------------------------------------1 Morris Hargreaves McIntyre (2006), Making it to Market: developing the market for contemporary craft, Arts Council England. This report presented the findings of a two-year-long research programme by Morris Hargreaves McIntyre into the market for craft, with a specific focus on contemporary fine craft. 2 Market sizes are calculated using the 2008 Mid-year population estimates the most up-to-date population estimate available at the time of writing.

1.3 Market size3

1.4 Characteristics of the craft

market (craft buyers and potential buyers)

The market for craft in England is substantial: 40% of adults in England (16.9 million people) have purchased a craft object. A further 23% (9.6 million people) would consider buying a craft object, but have not done so yet. Combined, these active and potential buyers indicate a total market for craft comprising heritage, traditional and contemporary craft of 26.5 million people, or 63% of all adults in England. 5.6 million craft pieces are purchased each year, by people living in England. A conservative estimate of the total value of these annual sales is 913m. Market demand is greatest for contemporary and cutting edge craft: 97% of currently active craft buyers state that they either currently buy or would consider buying contemporary craft, and 90% state that they either currently buy or would consider buying cutting edge work. 7% of currently active buyers only or mostly buy cutting edge contemporary craft. 10% of active buyers state they would buy contemporary craft but not cutting edge work. There is significant latent demand within the marketplace: Over a third (36%) of people expressing an interest in buying craft have yet to make a craft purchase. Contemporary and cutting edge craft is equally attractive to these potential buyers as it is to currently active buyers. 97% of potential buyers state they would buy contemporary craft, and 93% state they would buy cutting edge work.

Compared to the rest of the adult population of England who have not bought and would not consider buying craft, those in the craft market4 display the following characteristics: They are more likely to be female (57% compared to 35% of those not in the market), and to be educated to degree level or higher (25% compared to 16% of those not in the market). They are twice as likely to be culturally active than the population as a whole, with 18% having attended a cultural event in the past 12 months compared to 9% of those who state they are not in the market. They are more likely to have general or specialist knowledge about cultural subjects, and to have some type of professional or academic interest in cultural subjects. For example, 18% state a professional or academic interest in art or art history, compared to 7% of those who are not in the market. They appear to have a more open and curious mind set, with 26% strongly agreeing with the statement, I like to be surrounded by different people, cultures, ideas and lifestyles, compared to 10% of those not interested in buying craft. They are also more likely to strongly agree that the arts and culture improve quality of life for us all than those not interested in buying craft (16% versus 2% of those not in the market). Buyers and potential buyers of craft differ in terms of demographic, interests and outlook. Buyers display the following characteristics: They are slightly older than potential buyers: 53% are aged 45 or above. They are more likely to work in the education, health and charity sectors. They are more frequent attendees at a wider range of cultural events. They are more likely to be working in craft or related sectors: 1 in 20 state a professional or academic involvement with craft. They appear to be more willing to actively pursue their interests. For example, 22% strongly agree with the statement, I like to try things that are new to me compared to 14% of potential buyers.

--------------------------------------------------------3 Please see section 2.3 of the main report for definitions of terms including contemporary and cutting edge craft.

--------------------------------------------------------4 Results taken from online population survey conducted in 2010 (see 1.2)

Consuming craft: the contemporary craft market in a changing economy/Executive summary

1.5 Perceptions of craft 5

They are also more active in seeking out new cultural experiences and more likely to see culture as a high priority: 13% strongly agree with the statement, the arts and culture are essential to my life. There is a correlation between participating in craft activities and buying craft: 21% of buyers have taken part in a craft activity six or more times in the past 12 months, compared to 9% of potential buyers. Potential buyers display the following characteristics: They are significantly younger than buyers, and are also younger than those not in the market: 59% are aged 44 or under, compared to 47% of buyers and 54% of those not in the market. They are less frequent attendees at cultural events than buyers. They are also less likely to actively participate in cultural activities, and in craft activities in particular. They appear to take a more cautious, passive approach to new experiences than buyers, and are more likely to be guided by the opinions of others with only 18% strongly agreeing with the statement, I am happy to do my own thing regardless of what others might think, compared to 26% of buyers.

In the survey of those in the craft market, i.e. buyers and potential buyers, respondents were given a list of 29 words and asked to select the attributes that they would associate with each of four categories craft, design, luxury brands and art. The results suggest that whilst the word craft shares some perceived attributes with these related fields, it also has a distinctive set of associations of its own. The word craft is most closely associated with terms suggesting authenticity and quality, particularly the words handmade, workmanship and genuine. It is also the word most likely to be seen as associated with the terms personal and for everyone.

--------------------------------------------------------5 Results taken from the detailed survey of 416 buyers and potential buyers.

1.6 Considering a craft purchase

1.7 Buying Craft

Selected from a list, the reasons for buying or considering buying craft for half or more of the sample are that: Craft makes a unique gift (58%), I admire the human skill involved / want to keep craft skills alive (55%) and Beautiful objects appeal to me (49%). The reasons chosen by over a third of the sample are: It means I own something that nobody else does (41%), I like to have beautiful objects in my home (39%) and To support craft makers (35%). Most people considering a craft purchase say they do so by browsing at shops, galleries, exhibitions and / or fairs. Browsing online for information is more popular amongst potential buyers than amongst current, active buyers, who are most likely to seek information from Open Studios events.

Whilst buyers stated preference for real world retail environments becomes more pronounced when it comes to actual purchasing, it should be noted that interest in buying online has roughly doubled since 2004. Most craft purchases are incidental and unplanned. When asked about the last piece of craft they bought, the majority of buyers agree with the statement, [It was] just something that I came across in passing that caught my eye when I was out and about. The most common triggers to a first craft purchase are a visit to a fair, exhibition or event, and the search for or opportunity to buy a unique gift. The majority of buyers (63%) say they are willing to take risks with their craft purchases, and specifically to make purchases without the endorsement of others or prior knowledge of a makers work. Potential buyers demonstrate a greater aversion to risk in relation to new experiences in general, which influences their attitudes towards craft purchasing. Potential buyers are likely to value craft objects for their uniqueness and potential future value. They are less likely than buyers to value the objects aesthetic and material qualities, or the creative processes, ideas and stories they embody. Only 10% of potential buyers agree with the statement I am drawn in by the story behind the object or the ideas it represents, compared to 24% of active buyers. The most commonly stated obstacles to craft purchasing are the perceived expense of craft objects (for 29% of potential buyers), and prioritisation of other areas of spending (for 23%). 21% of potential buyers state that they have never purchased craft because they have just never seen a piece of craft they like enough.

Consuming craft: the contemporary craft market in a changing economy/Executive summary

1.8 Consumer trends relevant to the craft market

Whilst consumer trends commentators may not agree on exactly how the current economic circumstances will affect the amount that consumers are spending in the short and long term, sources reviewed for this study are in broad consensus that recent events have had a profound effect on how and why people spend. This research shows that discretionary spend on objects has not fallen uniformly across the craft market: a small proportion of buyers have actually increased their spend over the past five years. Overall, craft spending appears to be holding up better than spending on related categories design, art and luxury goods. Analysis of our survey data compared with a review of the consumer trends literature, suggests that the following identified key trends are influencing or likely to have an effect on the evolution of the craft market: Personalisation: as craft is perceived as more personal and individual than design, art or luxury goods, craft businesses can fulfil consumers need to demonstrate individualism through their purchasing choices. Craft businesses have the opportunity to extend current market reach by emphasising the uniqueness of craft pieces, their products, and to create new markets by connecting craft to niche lifestyles. Creating opportunities for the buyer to influence and personalise the pieces development could also enable makers to benefit from this trend. Authenticity: with increasing demand for authentic products and experiences, consumer perceptions of craft as more genuine than design, art or luxury goods is a significant asset. Eliciting the hidden stories, ideas, skills and provenance of craft objects at the point of sale, could become more important as this trend develops. Ethical consumption: for some consumers, craft represents an opportunity to buy desirable, luxury goods without compromise on ethical issues such as sustainability, human rights and fair trade. For craft businesses consciously employing sustainable or ethical practices and materials, this market niche offers significant future potential. The experience economy: increasing consumer interest in spending on experiences and on products which signify or remind the buyer of an experience are creating new and rich opportunities for craft businesses. Our survey indicates strong potential to grow the market, both by offering integrated buying / leisure making opportunities, and by using leisure making to increase the appreciation of the skills valued by buyers. New ways of signalling connoisseurship: the luxury shame resulting from economic downturn has led some consumers to look for new ways to signal connoisseurship, beyond engagement with brands and traditional luxury goods. This trend creates new opportunities for craft businesses: 68% of those in the craft market agree that they are less likely to buy luxury brands now compared to five years ago, whilst only 43% state that they are now less likely to buy craft.

1.9 Implications for the future of the craft market

Our analysis suggests a number of considerations for makers and other craft sector businesses and organisations seeking to convert those with an interest in craft into active buyers, and to increase spending by current craft buyers: Specific opportunities exist to attract new buyers to craft by targeting consumers of luxury goods and brands who are looking to signal connoisseurship in new ways, particularly those with strong or emerging ethical motivations. There is rich potential for social media tools to encourage and support a first craft purchase because of their potential to build potential buyers confidence and overcome risk aversion, through peer endorsement. Connecting craft to specific lifestyle interests and market niches, such as vintage fashion or sustainability, could enable potential and lapsed buyers to meet their existing needs through craft. Most potential buyers would not consider attending the craft events which tend to trigger an individuals first craft purchase. Introducing craft within bigger events and festivals, for example or through temporary retail spaces within a larger retail offer could help to overcome this barrier to entering the craft market. Gift buying is the second strongest trigger to making a first craft purchase, and opportunities to promote and facilitate the buying of craft gifts in non-specialist retail settings could also encourage potential buyers. Potential buyers need to be encouraged to see craft as affordable, and to be presented with options under 100. Extending the reach of the Own Art or similar schemes could also help to overcome the price barrier for new buyers. Because active buyers display a high degree of curiosity and confidence about engaging in new interests and experiences, the provision of new ways of experiencing and buying craft could increase the frequency of purchases made. In particular, because buyers are active participants in a range of cultural activities, they may respond well to buying opportunities which connect craft with their other cultural interests (e.g retailers located in concert venues or at literature festivals). In contrast to potential and lapsed buyers, current buyers appreciate the hidden stories, ideas and skills behind craft objects. Eliciting these hidden stories and supporting buyers to discover them for themselves could encourage purchasing amongst current buyers, and collecting in particular. Because current buyers constitute a highly educated market with a strong professional interest in the arts as well as a curious mind set, opportunities to gain a new and unusual perspective on craft such as visits to makers studios could encourage purchasing. There is potential to encourage purchasing, and collecting in particular, by exploring new ways in which the interaction between buyer and maker can create a personalised object. Enabling buyers to choose between pre-set options or to discuss the object as it develops, could offer viable alternatives to the existing models of purchase or commission. The correlation between buying craft and making craft (as a leisure activity) suggests that encouraging participation in leisure craft activities amongst potential buyers could extend the market for craft objects, in the medium to long term.

Consuming craft: the contemporary craft market in a changing economy/Executive summary

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Crafts Council 44a Pentonville Road Islington London N1 9BY

The full report Consuming craft: The contemporary craft market in a changing economy is available from www.craftscouncil.org.uk ISBN-13 9781903713235 ISBN-10 1903713234

Phone +44 (0) 20 7806 2500 Fax +44 (0) 20 7837 6891 www.craftscouncil.org.uk
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This report is available in large print or plain text. To obtain a copy in any of these formats please contact the Crafts Council on +44 (0) 20 7806 2500
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Crafts Council Registered Charity Number 280956.

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Morris Hargreaves McIntyre 50 Copperas Street, Manchester, M4 1HS Telephone 0161 839 3311 Fax 0161 839 3377 Email intray@lateralthinkers.com www.lateralthinkers.com

The Crafts Council is committed to equal opportunities and diversity.

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The full report Consuming craft: the contemporary craft market in a changing economy is available from www.craftscouncil.org.uk ISBN-13 9781903713235 ISBN-10 1903713234
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Cover images (clockwise from top) Customer being helped at Margot Selby, 2009 Photo: Dave Ashton COLLECT 2010 Photo: Sylvain Deleu COLLECT 2009 Photo: Dave Ashton